THE PRESIDENT: Thank you all. Please be seated. Thank you for
the warm welcome, and good morning. I'm honored to be here at the
Pentagon with the men and women who are defending America and are
fighting the war on terror. America is counting on your skill and
courage.

People in our military depend upon the support of the Congress and
the President and the administration. Today with the National Defense
Authorization Act, our government is meeting its obligations. We're
sending a clear message: In a time of conflict and challenge, America
stands with the United States military. (Applause.)

Mr. Secretary, you are doing a fantastic job for America.
(Applause.) You lead with courage; you lead with clear vision; you
lead with strength.

I appreciate General Dick Myers and the members of the Joint Chiefs
who are with us. Thank you for your great service to our country.
(Applause.) I want to thank the ranking enlisted personnel who are
with us today -- Sergeant Major John Estrada and Master Chief Petty
Officer Terry Scott. I appreciate you all being up here, as well.
Thank you for your fine service. (Applause.) I want to thank the
Department of Defense personnel who are with us today -- thank you for
working with the Secretary and Deputy Secretary Wolfowitz and others
for making sure the Pentagon does its job, and does its job well.

I want to thank the members of Congress who are here. I
particularly want to single out Chairman Warner and Chairman Hunter --
John Warner of Virginia, United States Senate; Duncan Hunter of
California, the House of Representatives. I want to thank both of you
for working on this important piece of legislation, for solving issues
inside the bill, and getting a good bill to this desk. (Applause.)

I also thank Senator Carl Levin, the Ranking Member, Senator Susan
Collins from Maine, and Congressman Tom Davis, for joining us on this
stage and for their leadership in this important piece of legislation.
I want to thank the other members of the United States Senate and the
House of Representatives who have joined us. Thank you for supporting
this piece of legislation. It's an important signal we're sending,
because, you see, the war on terror is different than any war America
has ever fought. Our enemies seek to inflict mass casualties, without
fielding mass armies. They hide in the shadows, and they're often hard
to strike. The terrorists are cunning and ruthless and dangerous, as
the world saw on September the 11th, 2001, and again in Istanbul last
week. Yet these killers are now facing the United States of America,
and a great coalition of responsible nations, and this threat to
civilization will be defeated. (Applause.)

In this new kind of war, our military needs to be fast and smart
and agile -- and it is. Right now, America's Armed Forces are the best
trained, best equipped, and best prepared in the world. And this
administration will keep it that way. (Applause.) The bill I sign
today authorizes $400 billion over the next fiscal year to prepare our
military for all that lies ahead. We will do whatever it takes to keep
our nation strong, to keep the peace, and to keep the American people
secure.

First, this legislation respects and supports the men and women of
our military, and their families, all of whom are a vital source of our
national strength. For more than three decades, America has been
well-served and well-defended by our all-volunteer force. The quality
and professionalism of that force has never been higher. Whether you
wear four stars, or one stripe, our military is making America proud.
(Applause.)

In this time of war, our military is facing greater sacrifice; our
men and women in uniform are facing longer separations. Your families
are feeling great pride, and sometimes they worry. America is grateful
for your willingness to serve, and we are showing our gratitude. This
bill authorizes an across-the-board pay increase averaging 4.15
percent. It extends through next year the increase of extra pay earned
by service members who volunteer for hazardous duty, and who endure
long separations from their families. The bill further reduces housing
costs for those living off posts. It reauthorizes bonus pay for those
with specialized skills. Those who risk their lives for our liberty
deserve to be fairly paid and fairly treatment -- treated. And this
bill keeps those commitments. (Applause.)

Second, this legislation helps America remain prepared and fully
equipped for the challenges of our time. In our new struggle, threats
can emerge suddenly, and so we must always be ready. This bill
authorizes funds for realistic training -- because battles are won with
the effective training of our people.

The Congress has authorized the full $9.1 billion that I requested
for ballistic missile defense. The spread of ballistic missile
technology, along with the spread of weapons of mass destruction, is a
terrible danger to America and to the world, and we must have the tools
and the technologies to properly protect our people.

This bill also advances the vital work of transforming the
personnel system for civilian defense workers, so that we can place the
right person in the right job to meet the challenges we face. Nearly
700,000 civilian defense workers have been laboring under a cumbersome,
inefficient system designed for another century. The bill I sign today
reforms this system. It gives DOD managers the flexibility to place
civilian workers where they are most needed, without needless delay.
It speeds up the hiring process so that new employees will not have to
face a wait of many months before beginning their service to our
country. It introduces pay-for-performance bonuses and streamlines the
promotion process, making a career at the Defense Department more
attractive to talented workers.

These are landmark reforms, the most ambitious of their kind in a
quarter-century, and similar in scope and purpose to those enacted for
the Department of Homeland Security. To win the war on terror, America
must fully utilize the skills and talents of everyone who serves our
country, and this bill will help us achieve that goal. (Applause.)

Every member of the United States military is now involved in a
great and historic task. And the stakes for our country could not be
higher. We face enemies that measure their progress by the chaos they
inflict, the fear they spread, and the innocent lives they destroy.

America's military is standing between our country and grave
danger. You're standing for order and hope and democracy in
Afghanistan and Iraq. You're standing up for the security of all free
nations, and for the advance of freedom. The American people and your
commander-in-chief are grateful. And we will support you in all your
essential missions.

And now it is my honor to sign the National Defense Authorization
Act For Fiscal Year 2004. May God bless you all. (Applause.)